Cricut Stock Earnings Reports

Cricut reported Q1 2026 revenue of $159.5M (down ~2% YoY) with net income of $20.3M (12.7% margin). Platform revenue grew ~6% to $84.8M, supported by paid subscribers (~3.08M, +104k YoY) and higher ARPU, while product revenue declined ~9.6% due to lower ASPs, promotions and end-of-life inventory clearances. Global machine sell-out units were up YoY and management highlighted early benefits from a new platform-first, bundle-only approach (Joy 2, Explore 5 bundles) and the launch of a Direct-to-Film (DTF) service. Engagement trends are stabilizing: active users +1% YoY, 90-day engaged users -1% YoY; early onboarding cohorts show higher cut intensity. Gross margin was 58.1% (product GM pressured to 23.1% by inventory write-downs, tariffs and promotions); platform GM remains very high. Cash and liquidity are strong ($256M cash, no debt); inventory was $106M. Management will stop disclosing supplemental breakdowns between connected machines and accessories/materials (will report 'platform' and 'products' only). They expect a tougher H1 (Q2 revenue not expected to grow YoY) but are confident in a stronger back half driven by product roadmap, international investments and marketing. Company remains profitable and cash-generative for full-year 2026, continues share repurchases ( ~$29.1M remaining on $50M program) and pays a recurring semiannual dividend ($0.10/share). Tariff uncertainty remains; refunds have been applied for but not recognized. Key investor considerations: 1) platform strength and monetization upside if sell-out converts into subscriptions/materials growth, 2) near-term product revenue/headwind from lower ASPs and inventory transitions, 3) margin exposure to tariffs and inventory write-downs, and 4) capital return (buybacks/dividend) with a continued investment cadence in R&D, marketing and international expansion.